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Braganza Enterprise uses a perpetual inventory system and has a highly labour intensive production process, so it assigns manufacturing overhead based on direct labour cost.

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Braganza Enterprise uses a perpetual inventory system and has a highly labour intensive production process, so it assigns manufacturing overhead based on direct labour cost. Braganza's predetermined overhead application rate for 2019 was computed from the following data: Total estimated factory overhead $1,256,000 Total estimated direct labour cost $785,000 The following activities took place in the work in process inventory during August: WIP Inventory A/C August 1 Bal. b/f Direct Materials Used 254.800 Other transactions incurred: Indirect material issued to production was 538,000 Total manufacturing labour incurred in August was $345.000, 80% of this amount represented direct labour. Other manufacturing overhead costs incurred for August amounted to $340,750. . Two jobs were completed with total costs of 5324,000 & $240,000 respectively. They were sold on account at a margin of 40% on sales. 51.250 Required: i) Compute Braganza's predetermined manufacturing overhead rate for 2019. State the journal entries necessary to record the above transactions in the general journal: a) For direct materials used in August b) For indirect material issued to production in August c) For total manufacturing labour incurred in August d) To assign manufacturing labour to the appropriate accounts e) For other manufacturing overhead incurred f) For manufacturing overhead applied for August g) To move the completed jobs into finished goods inventory h) To sell the two completed jobs on account iii) Calculate the manufacturing overhead variance for Braganza and state the journal entries necessary to dispose of the variance. iv) What is balance on the Cost of Goods Sold account after the adjustment Calculate the gross profit earned by Braganza. vi) Determine the balance in work in process inventory on August 31

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